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September 2012 Issue 001 Vol. 10
THE BULL & BEAR
FROSH 2012
Frosh Prince Froshopoly
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Time to Get Wild Vision 2020 Bronfman Floods Banking with Facebook
The Bull and Bear News 4 The Frosh Prince Takes First-Years to Bel-Arts 10 Vision 2020 11 The Race to Repair Bronfman 12 J-Board to Hear Bangs v. Calver/Cheng
Markets 16 Global Automotive Industry Shifts Focus to Emerging Markets 18 Apple VS. Samsung 19 Facebook: A Closer Look at What Happened 20 Commodities: An Asset Class Being Rediscovered 21 Alior Sync: A Bank With No Borders
Lifestyle 22 Time to Get Wild 23 MarchĂŠ 27 24 Sticks and Stones May Break My Bones But Chains and Whips Excite Me 25 High Fashion in High Demand
Opinion 27 Regret 28 Misogyny in the Friend Zone 29 Food for Fuel 30 The Dark Knight Rises VS. The Avengers 2
Editor’s Note David Lin
EXECUTIVE EDITOR
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met with my editorial staff earlier in April to discuss the direction of The Bull & Bear. We spent four hours in deliberation, reviewing the stories we covered last year, discussing our resources and capabilities, but mostly, we talked about McGill. Our school is a mini metropolis; thousands of people from all walks of life congregate each day on our campus to learn, teach, serve, and govern. We have the rare opportunity, not only as journalists, but as members of the McGill community to observe, day in and day out, a cross-section of a diverse society. Nowhere in the world can you find intellectuals from all disciplines and fields of study in one place, at one time. Our mission as a student publication is to provide a unifying force that represents students from all around the campus and chronicle the stories produced by this immensely diverse establishment. The Bull & Bear has progressively become more diverse, not only in our backgrounds (this year, more than a third of our Management-based roster is comprised of Arts students) but also in our coverage. We continually strive to become more inclusive of as many campus groups as we can, which is why this year, we have switched from publishing a monthly newspaper to a monthly news magazine. Our focus is to produce in-depth investigative pieces on all facets of McGill life and to continuously innovate the way in which we deliver our content. Chronicling diversity is a great challenge, but also a great privilege. Thank you, McGill, for the opportunity to document what is undoubtedly another unforgettable year.
BRIEFS
Briefs
Your guide to events around campus BBQ with HMB
Rethink Conference
Thurs Sept 13, 12:30-1:30pm James Square Students are invited to join Principal Heather Monroe-Blum and members of the senior administrative team for hotdogs, hamburgers and vegetarian fare.
Friday Sept 21 McGill’s Sustainability Fair presents their Rethink Conference on September 21st; the conference wwill focus on the long-term sustainability plan for campus with consultation from Vision 2020.
4à7 and BDA
Aboriginal Awareness Week Monday Sept 24 Throughout Campus Aboriginal Awareness Week is a week dedicated to honouring the many Aboriginal cultures across Canada, including the Métis, the Inuit and First Nations.
Thurs Sept 13 Bronfman Basement and the AUS Lounge MUS and AUS executives welcome McGill students back to school with the first 4à7 and Bar Des Arts of the new semester.
Cazzette Thurs Sept 20, 10pm Telus Theatre MUS presents Cazzette, the Swedish DJ duo, at Telus Theatre. The eventseeks to replicate the remarkable success of the Avicii show that took place last September.
Zain Alimohamed Jessica Simmonds Vidal Wu Opinion Editors
Kristine Pinedo April Wu Sean Leslie
IM Networking Breakfast Thurs Sept 20, 8am Bronfman 2nd Floor International Management students are invited to meet and mingle with various alumni and enhance their career opportunities at a networking breakfast.
David Lin
Executive Editor
Avi Rush
Managing Editor
Jean Moirez Desautels Montreal Career Fair Friday Sept 21, 10am-3pm 2200 rue Mansfield Desautels welcomes exhibiting companies from around the world at the annual Montreal Career Fair on Friday, September 21st from 10am to 3pm.
Media Editor
Michael Horowitz
Chief Layout Editor
Sean Finnell Web Editor
Dan Novick Natasha Racco News Editors
The Bull & Bear - September 2012
Lifestyle Editors
Fei Qi Sameer Rizvi Mohammad Awada Markets Editors
Kapil Mehra
Advertising Director
Olivia Siu
Marketing Director
Alessandra Hechanova Matthew Hunter Brian Lau Michael Tong Layout Editors
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The Frosh Prince Takes First-Years to Bel-Arts Newly combined SSMU and AUS activities attempt to increase efficiencies Doron Lurie and Alex Pajusi CONTRIBUTORS
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he Frosh Prince of BelArts took incoming Arts students on a 90s-themed weekend tour filled with new allfaculty events as well as frosh staples Beach Day and Pub Crawl. In their second reorganization of Frosh in as many years, administrators and student leaders combined SSMU Frosh with individual faculty froshes, kickstarting the week with a SSMUsponsored concert and effectively blurring the line between the two events. Dutch DJ R3HAB
performed at a packed Terrasses Bonsecours on Tuesday night, with over 3,000 students from all faculties in attendance. Amid recent concerns of the role of alcohol and sexual pressure in Frosh, a motion adopted on March 1, 2012 by the SSMU Legislative Council states that “SSMU be mandated to restructure SSMU Frosh model with the understanding that it currently fails to meet the SSMU’s goals,” and that “the SSMU take a leadership role by encouraging faculty
associations to transform Faculty Froshes into a safe space for all students.” Lagging SSMU frosh attendance was a concern when planning the new combined frosh. “This year we decided that we’d probably get higher participation on the last day if we combined faculty frosh with SSMU frosh,” said Arts Frosh Internal Coordinator Stephen Exel. “We worked very closely with [SSMU] this summer, and they were a great resource to have.”
PHOTOS BY JEAN MOIREZ, DAICHI ISHIKAWA & HRISTO VASSILEV
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The collaboration involved few changes, however. Registration fees for the two events were combined, and SSMU Frosh was not marketed as a separate event. “[SSMU] planned basically the same things they used to,” said AUS VP Events Josh Greenberg, citing shared resources like the beer tent and Beach Day. Not all aspects of the closer SSMU collaboration were positive. Greenberg expressed some disappointment with SSMU’s dedicated operational staff. “Some of them were great, some of them were a complete disaster,” he said of their ability to help manage events. AUS had its own team of 127 operational staff members, the most in the event’s history. Led by coordinators Natasha Fenn and Jonathan Carson, the staff set up and operated events throughout the week. Carson lauded the dedication of this year’s staff as one of the key reasons for frosh’s success. “In previous years, we’ve expected somewhere between 5075% of any given O-staff schedule to show up for a shift, and this year we just had fantastic turnout rates.” The Frosh Prince of Bel Arts began on Thursday with a monstrous Pub Crawl circuit that covered a variety of bars around campus. Classic drinking games at Bar des Pins, McKibbins Irish Pub, Café Campus, Muzique, The Bull & Bear - September 2012
Ivy and our very own Gerts Bar, among others, provided newly legal students with creative ways to imbibe. Police presence increased noticeably in the McGill ghetto in anticipation of the raucousness to come during the week’s pre-drink parties. Law enforcement seemed tolerant of noise and ignored even the more vulgar chanting. However, they came down hard on those drinking in public and did not hesitate to issue tickets to partiers who had not yet had enough en route to Stereo, Thursday’s nightclub venue. With Thursday’s late night events and the day’s inclement weather, Friday’s turnout was lower than expected. Luckily the rain cleared, so the afternoon’s inflatable castle carnival was unaffected. A variety of inflatable events were made available, including jousts, mazes, basketball and twister. On Friday evening, participants descended on the Old Port for an evening boat cruise – a floating party that toured the Saint Lawrence river and provided scenic views of the Montreal skyline. The night’s club event at Arena, while well-attended, seemed overshadowed by the cruise. Saturday’s Beach Day, by many accounts the most anticipated event of the week, was also the most challenging for organ-
izers. Much like previous years, getting over 3000 participants to the beach proved a logistical nightmare. Frosh coordinators booked 26 buses to meet demand, but it still took hours to clear out of campus, with the last bus not leaving until well after 1pm. Most agreed that the beach was a great time once they got there, adding sun, sand and swimming to the otherwise urban backdrop of Frosh. The return to Montreal created similar transportation problems. One bus was so swamped by students trying to get in that the driver left without taking any passengers. Another became stuck in a ditch, and could not be moved despite the best efforts of students trying to help. “There was a complete lack of a system, and that falls on everyone in the faculties and at SSMU,” said Greenberg. “Getting to beach day was difficult – getting back from Beach Day was even worse.” Eventually, the coordinators managed to instill some order with the help of operational staff and Frosh leaders, and from then on the buses proceeded fairly smoothly. Beach Day transportation is a persistent quagmire for Frosh organizers, yet none of the AUS coordinators interviewed for this article could suggest an alternative to the current operating procedure.
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Back at campus, AUS firstyears were provided with dinner courtesy of SmartBurger before heading out to prepare for a night at La Mouche and Telus Theater with Science and Management students. The alternative all-ages event – a Toga Party in the SSMU ballroom – was, according to one first-year student “pretty cool, for an all-ages thing.” The final day of Frosh was noticeably more relaxed than the previous three. Piknic Electronik
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played host to exhausted firstyears and their hoarse leaders. The outdoor electronic music festival becomes a rave in the evening, but Piknic lived up to its name during the early afternoon as attendees took it easy with some food and drink while enjoying the beautiful weather and minimalist electro beats. Things picked up for the week’s final event, with the ”Sleepless in Bel-Arts” Party providing dance floors, bowling, and arcade games to over 3,000
frosh participants from all faculties at Pepsi Forum. In the wake of recent fiscal problems, there was some uncertainty with regard to the new combined frosh week. In 2010, AUS frosh coordinators overestimated registration demand and raised the participant cap to 1800 students, causing a $30,000 deficit for the event. With the blunder still fresh in many organizers minds, they now operate more cautiously. This year’s registrant
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cap was 1400 students, compared to last year’s 1450. “We try to keep estimates conservative – you never know how many people will show up,” said Exel. Even with the conservative cap, registration fell about 200 participants short of the 1400-student cap. Greenberg speculated that the newly-combined registration fee of $140 ($80 for AUS frosh, $60 for SSMU frosh), as well as many new “à la carte” events around campus, may have dissuaded some potential participants. “CEGEPs being delayed in
The Bull & Bear - September 2012
Quebec last year may have affected McGill admissions,” he added. Greenberg was quick to state that AUS Frosh broke even this year. Last year, university administrators enforced a pay-for-beer policy at the beer tent, ending a long history of free-flowing beer on the lower field. Many expected registration costs this year to decrease as beer was no longer a bundled cost component, yet the combined cost of AUS and SSMU frosh went unchanged. “We earn surprisingly little money by charging for beer,” said Exel. “It’s
entirely not budgetary,” he added, indicating that the policy of charging for beer is solely to discourage excessive consumption. With few logistical errors, AUS and SSMU coordinators managed to execute a largely successful reformed frosh. They also managed to execute the best hats. Students were grateful for the extended weekend that followed, as most needed a few days to recover from a week that was flip-turned upside down in every way possible.
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Vision 2020 Orientation The frosh experience re-imagined through the eyes of sustainability Doron Lurie
CONTRIBUTORS
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he vision 2020 frosh orientation event provided first year students the opportunity to get an insider perspective on becoming involved in life at McGill and Montreal as a whole. While the event had a decidedly ecological flavour, being sponsored by the McGill Office of Sustainability and supported by the Sustainable Projects Fund, most of the discussion centered on finding your place in an environment that expects you to forge your own path and refuses to hold your hand. “McGill is a place that focuses on theoretical learning, so some students may be frustrated by the lack of applied programs,” David GrayDonald, SSMU Sustainability Coordinator (BASc ’10) told the crowd in a short speech on what he believes McGill is all about. “For those interested in things like creative writing, set design, filmmaking or journalism, you have to find a way to tap into student communities.” While the following panel discussion often returned to topics that were purely academic in nature, panelist Brooke Nancekivell (Arts U2), Rez Life Community Engagement Coordinator, gave an example of how student involvement can serve to actively improve sustainability efforts on campus. “Midnight Kitchen resulted from students protesting McGill’s food monopoly in the early 2000’s and now provides free vegan meals and is a friendly environment to get involved in campus life.”
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Started in early 2012, Vision 2020 is “a year-long consultation and planning process that builds on recent successes to set a sustainability strategy for—and from—the entire McGill community.” One of the goals of the Frosh event was to inspire students to become involved in this strategy and find ways to contribute to the school’s wide array of sustainability efforts. The Vision 2020 name comes from a prompting question: Where do we see McGill in the year 2020, and how do we get there? The past few years have marked shift among students, faculty and the administration towards committing to sustainability. As a result, McGill now has an Office of Sustainability, a published Sustainability Policy and a Sustainability Projects Fund (SPF) of $800,000 per year to put towards creating opportunities
very high profile student involvement. The ecological gardens on MacDonald campus started as an idea by some third year Bioresource Engineering students to get involved in local food production. They asked the Dean for some land, and seed funds were provided by the Mac Campus Students’ Society. Today the gardens sell food to McGill Dining Services and have a business plan that is moving them towards selfsufficiency.” While we cannot see eight years from now to the year 2020, if current trends hold even remotely, McGill is positioned to become a leader in sustainability initiatives. Professor McCourt’s parting advice to the new undergraduates was a tip on becoming involved. “Professors are often reluctant to supervise independent projects that do not align exactly with their research as we are for the
If current trends hold even remotely, McGill is positioned to become a leader in sustainability initiatives. for the McGill community to play an active role in this vision for the future. Professor George McCourt (Environment), another panelist, spoke glowingly of the Projects Fund. “The Fund provides opportunities for
most part extremely busy people. However, faculty members may be able to point you in the direction of people and groups with similar goals to your own even if they cannot help you themselves.”
NEWS
The Race to Repair Bronfman Flood causes millions of dollars in damage Aimee Pellegrino STAFF WRITER
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n the evening of July 12th, 2012, after most had already gone home for the night, the fourth floor custodian in Bronfman heard bizarre noises coming from one of the bathrooms. The sound was a clean water pipe that had become detached, causing water to spew from the ceiling and permeate through to the four floors below. The rate of water flow was so severe that security, the fire department, and the renovation crew, Premiere Action, were called onto the site immediately. Concurrently in July, the fourth floor was under renovation with the hopes of constructing newer office spaces, classrooms, and bathrooms for the upcoming year. At first glance, it would seem that the disaster was due, at least in part, to the renovations. However, according to Christine Boynton, Desautels’ Director of Operations, after analysis made by McGill’s insurance team and investigators, the cause of the flood was inconclusive. After the incident, Desautels had a few major goals. The first priority was to rebuild in a swiftly manner so that classes would go undisturbed while ultimately ensuring student safety along the way. This challenge meant that the Premiere Action team had but a week or so before MBA students would return to their scheduled classes on August 1st. With cooperation from both the faculty and many MUS organizations, MBA students returned to class The Bull & Bear - September 2012
PHOTO BY JEAN MOIREZ
The Bronfman Building suffered a major flood on July 12th, 2012
as scheduled, and on September 5th, undergraduate programs were able to begin without drastic disturbances. During the months of July and August, Bronfman was closed to all except those with restricted access. This guaranteed that Bronfman could be brought back to a state that was safe for all students, faculty and staff for the fall semester. MUS President Francisco Barrio Olivas stated that the Faculty was “very open about the work that had to be done. They communicated to me the tentative remodeling schedule, and they made sure to take student feedback into consideration when defining which areas took priority, such as classrooms and study rooms.” Of the seventeen classrooms in Bronfman, thirteen rooms experienced water damage. With
the hopes of starting the school year without much interruption, most classrooms were brought back to their original state. However, because room 151 suffered severe damage, additional renovations will be made next summer. Only one classroom, room 340, was not finished in time for the 2012/2013 academic years. Therefore, the location for classes scheduled in that room has changed to room 245 for the time being. Overall, the costs of the renovations from the water damage are estimated to be in the millions. This investment allowed for Bronfman to be more or less completely accessible by September. Other than a few adjustments, Bronfman is almost as good as new. Soon enough our beloved building will once again be the envy of all other faculties.
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J-Board to Hear Bangs v. Calver/Cheng Case concerns results of AUS Winter Referendum Devin Kesner STAFF WRITER
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he legitimacy of the Arts Undergraduate Society (AUS) 2012 Winter Referendum is being questioned in a case to be brought before the SSMU Judicial Board this semester. The two questions passed during a contentious online voting period in March. Christopher Bangs, the Chair for the No Committee for the two contested questions, is pursuing the case against former AUS President Jade Calver and former Elections AUS Chief Returning Officer Victor Cheng. The first referendum question being contested by Bangs increases the majority required for amending the AUS Constitution from a simple plurality to a two-thirds majority. The second allows for online ratification of decisions made by the AUS General Assembly after the assembly has taken place. These questions stemmed from a series of controversial AUS General Assemblies (GAs) held last semester. One GA was unable to maintain quorum. Another, the historic March 13th vote against a general student strike, required several overflow rooms and experienced a multitude of logistical issues. In Bangs’ petition to the Judicial Board, he calls for these questions to be declared null and void, as he believes that “repeated and systematic violations of the AUS Bylaws by Elections AUS compromise the integrity of the elections.” Bangs maintains that the Referenda period in question involved “six unresolved violations of the Bylaws” in addition to “grievous misconduct on the part of Elections AUS that violated the spirit of the Bylaws and of the democratic ideals of the AUS.” Calver and Cheng issued a re-
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sponse to these allegations as respondents in the case, defending their adherence to the Bylaws and the fact that “the evidence put forward by the Petitioner [Bangs] does not accurately represent the actions of the Respondents [Calver and Cheng].” They also state their belief that, due to his connection to the No Committees for these questions, “the motives of the Petitioner are not those of democracy, but rather are fueled by the Petitioner’s position on the questions.” Most of the violations highlighted by Bangs regard the potential disenfranchisement of members of the AUS
While Calver and Cheng admit to being aware of some Bylaw violations, they uphold the validity of the results of the voting process. They find that steps were taken to rectify violations, such as invalidating and postponing the original planned polling period to fix an error, and that any other violations on their part “have not in any way served to undermine the integrity of the polls.” In defending their case, Calver and Cheng also made assertions that Bangs has a demonstrable bias as the petitioner for this case, as he is only challenging the questions of which
While Calver and Cheng admit to being aware of some Bylaw violations, they uphold the validity of the results of the voting process. through an alleged failure to follow proper procedure in the orchestration of the voting period. These allegations include the facts that the announcement of the polling period was published only on the AUS listserv and not in a student publication, and the allegation that proper minimum time periods for polling and procedures for advanced notice were not adhered to. In addition, there are concerns that the original ratification of the referenda questions by the AUS Legislative Council were not performed in a democratic fashion.
he was the chair of the No Committees rather than disputing the entire polling period. In addition, Bangs was a candidate for AUS President in the elections that were to take place during the original planned time period of the referenda polling period. Bangs lost the election, which was won by Devon LaBuik. Presiding over the case will be SSMU Judicial Board Chief Justice Joel Kwan, as well as Judicial Board members Charif El-Khouri, and Rachel Tonelli-Zasarsky. The date for the hearing is yet to be determined.
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AUS Council Holds First Meeting of 2012 President LaBuik shares his vision for AUS Jules Eustache STAFF WRITER
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he Arts Undergraduate Society (AUS) held its first Council meeting on Wednesday, September 5th. The AUS Executive Council and executive members from all Arts departmental associations were in attendance. On the agenda were executive summer reports and two motions. In his report, AUS President Devon LaBuik shared a general vision for the Society’s future, which included electoral reform, strengthening the constitution, and promoting outreach to first year Arts undergraduate students. When asked which reforms could be expected from the AUS in comparison to last year, LaBuik said, “[The AUS] will be focusing on increasing outreach, not only to first year students, but also to the general Montreal community through committees and local business sponsorships. The second focus is financial, which not only involves how we select the VP Finance but also big changes to how we operate all of our finances.” In line with LaBuik’s aim to extend outreach to first year students, AUS VP Internal Justin Fletcher’s report included the continuation of the Freshman Events, Academics, and Representative Council (FEARC). In addition, Fletcher unveiled the creation of an AUS Equity Policy, which will be designed and implemented with the help of SSMU representatives. AUS VP Finance Saad Qazi shared positive news with Council concerning AUS finances. As of 3 months ago, the McGill administration had received all necessary financial documents from the AUS, effectively lifting the freeze on the The Bull & Bear - September 2012
PHOTO BY DAICHI ISHIKAWA
AUS President Devon LaBuik speaks during the AUS Council meeting
release the Arts student fees to the AUS. With regards to the Arts Frosh financial report, both Qazi and AUS VP Events Josh Greenberg confirmed a net profit from the event, differing from the deficits experienced in previous years. AUS VP Academic Tom Zheng unveiled his plan to expand the Essay Center, a volunteer program that provides tutoring for Arts students who seek to improve their writing capabilities. In addition, Zheng plans to modify the Peer Tutor System as well as to provide greater accessibility to student advising services. The meeting was concluded by two motions. In the first, the AUS Council voted to table a motion to specify an attendance requirement
on the AUS Council. The motion, submitted by President LaBuik and VP Internal Fletcher, calls for stricter guidelines regarding council meeting attendance. It was tabled for further review. Following this, Fletcher filed another motion to rename the AUS meeting rooms, claiming that the current names were non-inclusive due to their references to alcoholic beverages. The council voted to pass the motion, and will thus be seeking name suggestions in the coming weeks. LaBuik concluded the meeting by instructing Council to pay close attention to AUS happenings in the coming weeks, as many positive changes are expected.
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Social Business Finds a New Base At McGill Two student entrepreneurs launch an initiative aimed at changing the way we think and do business David Lin
EXECUTIVE EDITOR
“W
hat can we do as students, and later on in our careers, that can not only be profitable and help sustain ourselves, but also be good for the world and solve global issues?” That was the question Joanna Klimczak, a U2
International Management student at the Desautels Faculty of Management, asked herself more than a year and a half ago, and it became the genesis of a new social business initiative at McGill University. Enacting change with the help of corporate bottom lines
seems to be the zeitgeist of the modern business world, and I’ve certainly heard similar questions asked by many a socially-minded business students. Klimczak and Mariana Botero, a student of Finance and Strategic Management in her fourth year, strike me as
PHOTO COURTESTY OF JOANNA KLIMCZAK
McGill students participated in the World Social Business Day on June 28, 2012, in Montreal
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NEWS a different case altogether because here, they’ve moved beyond merely reflecting on proverbial mantras and have taken it upon themselves to actually realize the potentials of social business. Their crusade against global poverty has only recently begun, and McGill is to become their “base.” When we sat down for an interview, Botero and Klimczak immediately exuded a genuine passion for the subject of social business, something that I’d have to admit, I rarely encounter in the Bronfman building. Klimczak explained that their goal was to bring social business to McGill, drawing from the work of Muhammad Yunus as her inspiration. “I’ve always been interested in the concept of social business, but I’ve only started learning about it two years ago,” she says. “Muhammad Yunus [founder of the Grameen Bank and recipient of the Nobel Peace Prize] came to McGill in 2010. I got to meet him, and ever since, he has become a mentor to me both through personal interaction and through his books. This really inspired me to pursue his vision of a ‘non-dividend, non-loss’ business model in my career.” Botero started off a little differently; she met her current colleague through working on a class project. “I was working on a Taking Action project for my Social Context of Business class that I was taking with Professor Louis Chauvin. I wanted to work on something related to social business and sustainability, so another Social Context professor, Stephanie Berger, suggested I go to the McGill Office of Sustainability to see if they had any projects that I could work on.” It was in that office on Sherbrooke St. that Botero and Klimczak met, and they immediately started planning for their initiative. At this point in the interview, I had to stop them and ask what a “non-dividend, non-loss” business is. At the time, I was slightly ashamed to admit to them that The Bull & Bear - September 2012
my degree in Finance essentially trained me to ignore all business models that were non-dividend, non-loss in nature, so at the risk of projecting ignorance, I let them do the talking. Klimczak explained that it was first and foremost a model for doing business, as opposed to a model for charity work or notfor-profit organizations. Instead, social businesses distinguish themselves on their ability to generate cash flows internally, as op-
cation, Awareness, Taking Action, and Careers. Through these pillars, they hope to eventually launch a minor in Social Business at McGill, create routine workshops for students to learn more about the underlying issues, start and run a social business at our school, and provide resources to students looking to work in related fields. By the end of this academic year, this magnanimous duo aims to have hosted several social busi-
“Muhammad Yunus came to McGill in 2010. I got to meet him, and ever since, he has become a mentor to me both through personal interaction and through his books.” posed to reliance on third party donations; thereby generating the need to at least break even at all times, hence, “non-loss.” Such a business reinvests all its profits either back into the community in which it operates, or back into the business itself, as opposed to cash outflows in bonuses, fulfilling the “non-dividend” role. “In any social business, you invest in the community,” Klimczak says. This is the model that the concept of micro-financing follows. The lauded Grameen Bank, a pioneer in the field of micro-finance, takes any excess profit and invests it in more loans to the poor, or in the building of infrastructures in rural communities. Klimczak and Botero’s vision of engaging students through McGill’s Social Business Base, the tentative title they’ve given this initiative, is to operate on four “pillars,” or concentrations: Edu-
ness-themed events and movie screenings, organized panel discussions and conferences, and finalize a database of careers and internships for students interested in this endeavor. Ultimately, they would launch their own social business that would operate as a student-run club at McGill. The motives for initiating this project stems from their philosophies in how businesses should be integrated with our society. Botero sees solutions from longterm global problems to come from self-sustaining businesses – organizations that can fully integrate their bottom line with the rebuilding of their communities. Klimczak adds, “Current business models are great. They just need to change their ‘target’ in a way that allows them to re-measure success as something that isn’t solely defined by profits.”
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MARKETS
Global Automotive Industry Shifts Focus to Emerging Markets New markets will demand product range tailored to affordability Jonathan Craske STAFF WRITER
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he automotive industry, once the poster child of credit crisis casualties, has undergone a massive overhaul in recent years. Analysts, however, are warning of an end not yet in sight. As focus shifts from North America and Europe to faster growing markets, the playing field is very different for the world’s largest automakers. Moreover, darkhorse contenders are quickly gaining momentum. Between 2000 and 2008, the US market saw the sale of roughly 16.4 million units per year. By 2009, in the wake of the credit crisis, that number was reduced to just 10.4 million. While 2011 and 2012 were both years of reasonable recovery - 11% and 13% growth respectively – equity analysts continue to advise caution. Those figures are projected to flatten to just 5.3% in 2013, with forecasted sales of 14.8 million, falling well below past averages coupled with suspicions of cyclical demand (pent up from the credit crunch). The automotive market is also a noteworthy victim of the Eurozone crisis. Sales have dropped dramatically: from 4.6 million in 2007 to 2.2 million in 2012, with debt-ridden countries of Spain, Italy, Greece, and Portugal responsible for 70% of this decline. Despite leveling sales in Germany and the UK, Western Europe is no longer the dependable market it once was. With the underwhelming growth projections for both North America
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PHOTO VIA TOYOTA CANADA
Yaris - Toyota’s most popular model in emerging markets
and Western Europe, automakers are turning to the four markets that have helped drive increase in global retail numbers by 6% for the first half of 2012: Russia, Brazil, China, and India. Although Japan was technically the fastest growing market in 2012 at 52% y/y increase, the cyclical nature of sales in response to the 2011 tsunami highlight Russia and Brazil as the preeminent markets. With a y/y increase of 29% in 2012, Russia is set to overtake Germany as the largest market in Europe. Brazil is also among the fastest growing at 25% y/y increase. This growth is being
driven not only by a thriving middle class, but aggressive government incentives as well. Russia has set aside an average of $85 Billion USD for auto loans over the last three years to help stimulate purchasing. Similarly, Brazil has earmarked $8.8 Billion USD in stimulus for bank deposit requirements to boost loans. Both China and India continue to offer excellent growth potential as well. While China has seen its GDP growth deflate from 10% to 7.6% over the past 2 years, much of this is due to weakening in both exports and investment spending. Per capita income growth has remained at
MARKETS 12.5% y/y since 2000, and helps to explain rapid growth in sales, from 7.3 million in 2007 to over 11 million in 2012. India has seen gains from 1.4 million to 2.1 million over the same time period. The precipitate emergence of these markets means that automakers are now faced with entirely new challenges. While the American and Japanese giants of the industry have all undergone large scale overhauls, they approach new markets from very different positions. The Big Three of Detroit have all but fully recovered from the embarrassing collapse of 2008. Chrysler has fully emerged from the Troubled Assets Relief Program with 0 shares being held by the US government. Having lost its crown as the world’s top automaker to Toyota in 2009, GM has since reclaimed the title. Ford has undergone a complete rebuild, and is now among the best seated in terms of global supply chain efficiency. In Japan, the natural disasters of 2011 left Honda, Toyota, and Nissan with stagnant supply chains for nearly 6 months. The two former brands were also responsible for over 16 million units in combined recalls between 2011 and 2012. While they maintain strong numbers in North America, their ability to adapt to the rapid pace of new markets is under question. All four of the new markets will demand a product range tailored to affordability. Small and reliable vehicles with low running costs will need to be the largest volume and highest margin products. Moreover, established dealer networks will be needed to help build strong brand identity as new purchases make up such a large portion of the market. Since their collapse, Ford and GM have completely revamped their global product management system. Both have shed excess weight in the form of low volume brands, and streamlined manufacturing towards global platforms that transcend market barriers. These new levels of cost efficiency will be crucial in establishing a foothold in new The Bull & Bear - September 2012
markets. Chrysler, however, is not yet stable enough to undertake the aggressive expansion plans required to be a global contender. The Japanese, with wellestablished product lines that cater to the needs of developing economies, are still struggling with global product distribution. Mismanaged manufacturing structures and poor supplier sourcing have caused past problems in select Asian and European markets. Investments made in dealer networks in the early 2000s, however, will prove very lucrative in the coming years. There are also other contenders to consider. Volkswagen Autogroup plans to become the world’s largest automaker by 2018. They are currently ranked 2nd at 8.16 million units worldwide, ahead of Toyota (7.93 million) and behind GM (9.026 million). Tata Motors is also a potential player, having all but cornered a large segment of the Indian market with their
hyper-affordable Tata Nano. Like Tata, Korean brands Kia and Hyundai are expanding quickly, en route to becoming serious global competitors. With red figures flooding sales reports in Europe and North America, automakers will no doubt need to act quickly. However, it is as always a question of balancing speed and sustainability. Although some players are better seated than others going into the next few years, there are little to no guarantees as the global automotive industry continues what is sure to be an all but complete renovation. Global sales figures collected from Scotiabank Global Economic Research and Autopacific Market Research. Disclosure: I have no positions in the aforementioned underlyings and no plans to initiate any positions in the next 72 hours.
$25
BUSINESS CARDS Now Available at Dave’s Bronfman Basement
A deal so good, it’s like getting away with murder 17
MARKETS
Apple VS. Samsung Verdict Shakes the Smartphone Industry Maximilian Feinsot STAFF WRITER
I
n a landmark decision that could reshape the global smartphone industry, the United States District Court, San Jose division, ruled in favor of Apple Inc. on almost every count in its patent infringement case against Samsung Electronics Co., Ltd. After only three days of deliberations, the jury sided with Apple Inc. on almost all of over 700 questions of patent infringement, awarding Apple $1,049,343,540 in damages. The August 24th verdict, though one of over 50 worldwide patent infringement cases currently at play between Apple and Samsung, will likely have far-reaching effects on the smartphone industry. Apple Inc. (NASDAQ: AAPL), which sold 35.1 million smart phones in Q1 2012, currently holds the number two spot in the smartphone market behind Samsung Electronics’ 42.2 million smartphones sold in the same period of this year. Samsung
is also now the global leader of the mobile phone market, dethroning Nokia, which held the number one spot since 1998. In the case, Apple, the plaintiff, claimed that Samsung effectively copied its iPhone design, using Samsung’s Galaxy S and Galaxy S II smartphones as examples of the infringed patents. Apple went as far as to release a 132-page internal Samsung memo from 2010 that detailed how Samsung’s phones should be more like Apple’s. Samsung’s defense claimed that Apple’s iPhone design was a copy of other companies’ phones and that Samsung was merely following a trend set by companies like Sony and Apple. The jury took only three days to deliberate the case and Apple’s hand was the clear winner. This decision is expected to have a lasting effect on how Samsung, in addition to other Android partners,
will design and market their smartphones in coming years. Many of the so-ruled infringements on Apple’s designs are software-related, which implies Google Inc. will have to exercise caution with respect to how it designs its Android mobile operating system. Samsung’s phone designs will also have to be revamped. One potentially beneficial outcome for the smartphone industry as a whole is the possible diversification in smartphones that could result from the outcome of this case. Because Samsung’s smartphones will have to be clearly different from Apple’s iPhones looking forward, Samsung could seize this opportunity and develop new ways to set their smartphone lineup apart from those of Apple Inc. and other competitors. While the billion-dollar penalty on Samsung is among the largest patent infringement penalties leveled on the offender in US Patent history, it does not put a big dent in Samsung’s operating budget neither does it add even 1% to Apple’s current cash on hand, which currently stands at well over $100 billion. Furthermore, this decision is only one among several recent decisions in the Apple-Samsung brawl. Also on the 24th, a South Korean judge ruled that Apple and Samsung had violated each other’s patents and imposed partial bans of products and financial penalties on both companies. Though neither company will face any great loss as a result of these recent verdicts, the industry as a whole must now diversify or face an army of patent lawyers. Apple won this battle, but it set a precedent for the smartphone war that promises to make future developments only more interesting.
PHOTO VIA APPLE.COM
Disclosure: I am long AAPL and GOOG.
Apple’s Ex-CEO, Steve Jobs
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MARKETS
A Closer Look at What Happened Henri-Luc Carlin STAFF WRITER
E
ver since the Facebook IPO rumors began in 2011, trying to ballpark the social media giant’s value has obsessed investors. On May 17th, when the stock finally priced at $38.00/share, valuing the company at nearly $104 B and allowing for it to raise $16 B, few would have expected its first day of trading to play out as it did. On May 18th, as Zuckerberg rang the Nasdaq opening bell, the first of unpredictable events occurred – a glitch at the exchange delayed the trading of FB shares by nearly 45 minutes. Once the stock finally started exchanging hands, it opened at its current 52-week high of $45.00, only to close flat at $38.23. This clearly wasn’t the type of performance anyone was expecting from the all-mighty Facebook on its trading debut. While some pointed to the glitch as an explanation to the stock’s poor performance, others highlighted the fact that Morgan Stanley, the lead underwriter on the IPO, had been stabilizing the stock price by buying a large amount of shares and thus preventing it from plunging below its $38.00 issuance price. When relating FB’s first day of trading to that of comparable tech players such as LinkedIn, Groupon and Yelp, it is clear that investors were expecting significant gains. While buyers of the stock at IPO date have been faring poorly, investors opening positions along the way, assuming the price had bottomed out, also realized negative returns. In fact, the share price has lost nearly 50% of its value, closing at $19.15 on August 27th. Fueling this decrease in demand was notably FB’s Q2 earnings, which pretty much fell in line with Street estimates (Revenue of $1.18 B and Adjusted EPS of $0.12 vs. $1.15 B The Bull & Bear - September 2012
and $0.12), but also highlighted the company’s issues with the monetization of its mobile platform. Additionally, on August 16th, a rule restricting the sale of nearly 13% of FB’s outstanding shares was lifted. This allowed early investors such as Accel Partners, Greylock
While Facebook shares have clearly been going through difficult times, certain experts have started to claim the stock now fairly values the company. Furthermore, Zuckerberg, who once seemed to overlook the importance of the company’s share price, has
Experts have started to claim the stock now fairly values the company Partners and Goldman Sachs to cash out, sending the stock tumbling 6.3% and hitting a new low. Several other lockup expirations are scheduled to take place throughout the following months, allowing certain shareholders to sell over 1.4 B shares on the open market.
acknowledged that the tumble is “painful” to watch. Hopefully the company will find a way to restore investor confidence in the near-term despite failing to deliver the glorious stock performance everyone was expecting.
PHOTO VIA BANKIER.PL
Tech IPOs’ one-day returns
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MARKETS
Commodities
An asset class being rediscovered Sameer Rizvi
MARKETS EDITOR
I
n its most basic definition, a commodity is a raw material or primary agricultural product that can be bought and sold. Well, does that not allow commodities to also qualify and fit the definition of an investment product? If that truly is the case, then how come we see equity, fixed income, interest rate, exchange rate and credit products being traded on much larger volumes than commodities? The answer is that these asset classes are much easier to trade. Or at least, this was the case till the last decade or so. Commodities as an asset class are witnessing a rise in importance among both institutional and retail investors. An increasing number of investors invest part of their assets in gold as a hedge against uncertain times. In the meantime, various other commodities have also become an integral part of the investment portfolios of many ‘Intelligent Investors’ – a great read by Benjamin Graham. For over eight years now, investors have been using certificates and even more recently, ETCs (Exchange-Trade Commodities) and ETFs (ExchangeTrade Funds), to invest in this asset class in a cost-effective and highly flexible manner. Understandably, commodities tend to follow their own trends – they often have little or no correlation with other investment products such as equities or bonds. They are, therefore, well-suited for portfolio diversification and volatility reduction. Reasons for Revival So what are the real reasons for this growing revival? For one, the 20-year commodity bear market has bottomed out for most commodities and is well on its way towards an upward growth trajectory. Likewise, there is a boom in demand from both China and India as the population is
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GRAPH VIA GOLDPRICE.ORG
Gold’s performance over the last 10 years
growing richer and these countries are turning into the most important industrial centers of the world. Lastly, the rally feeds the rally – developed countries have increased their demand for commodities too. But not for the obvious reasons – this demand mostly comes in the form of pure investment capital. Gold Throughout history, gold has been used as currency and its importance as a store of value has not changed to this day – governments and central banks still keep reserves of gold. In addition, gold is traded nearly 24 hours every day in many markets worldwide, and thus spot prices for immediate delivery are quoted on a continuous basis. In 2001, gold prices ended a long downward march and started a steep upward trend that continues to this day. With increased instability visible in the EU nations and with the possibility of Greece and other nations potentially giving up the Euro, central banks all across Europe have been and continue to increase their store of gold. Oil With a share of almost 35%, crude
oil is globally the most important energy source before coal (29%) and natural gas (24%). Even more interestingly, oil became the first trillion-dollar industry and is still by fart the most traded commodity worldwide. The main trading platforms for crude oil are the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). Over the past few years and even decades, oil prices have been characterized by high volatility. By 1998, the market price of oil had fallen from its peak levels during the oil crisis in the 1970s to a record low of less than USD 10 per barrel. But looking towards the future, it is fairly safe to be bullish on oil - oil reserves are nearing their end. What this can mean is that the falling supply will cause the price to steadily rise; but it could also mean that we substitute our demand for oil with other sources of energy. We will just have to wait and see. Disclosure: I have no positions in any of the aforementioned underlyings and no plans to initiate any positions for the next 72 hours.
MARKETS
Alior Sync: A Bank with No Borders One emerging Polish bank may reinvent commercial banking Piotr Pietruczuk STAFF WRITER
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nce associated with the utterly bland depiction of being solely brick and mortar, the banking industry has evolved to conquer unchartered territories in the past years; it is now possible to bank online without leaving the comforts of one’s home. We have access to our bank accounts through smart phones, portable computers, and are constantly being abetted by other upgrades. Just when we think we have seen everything the banking world has to offer us however, Alior Bank, an up and coming bank based in Poland, has introduced Alior Sync, the first virtual-only bank in
PHOTO VIA BANKIER.PL
Wojciech Sobieraj, Alior Bank CEO, attributed much of the bank’s profits last year to Alior Sync
The Bull & Bear - September 2012
Poland. More than just a bank, Alior Sync offers customers discounts on video games, music, and movie ticket giveaways. Alior Bank CEO, Wojciech Sobieraj, describes this as “the most exciting and innovative project in Europe.” Each customer is recognized on an individual and personalized basis. Perhaps the most groundbreaking aspect is that it utilizes very unique Facebook applications. Don’t remember your friends account number? No problem. Alior Sync transfers money directly from their synched accounts. Want to brag about saving money? Alior Sync keeps track of your transactions and permits you to post your exact spending and saving trends on Facebook. The state of the art bank even connects each person’s Facebook picture with their account, allowing for a facile search when needed to locate someone. In essence Sobieraj says, Alior Sync “removes barriers of time and place for people in constant motion.” It allows for a person to easily transfer funds into another friend’s account only by locating their Facebook account. The process of incorporating its infrastructure, and IT technology with IND Group’s help was a long and arduous one with over 200 dedicated workers, 36 partners and suppliers, and 70,000 man hours involved. Together, with the collaboration of technology giants such as Oracle and Artegence (a Polish interactive media company), Alior Sync successfully entered the market in the summer of 2012. For good reason, Sobieraj remains very optimistic about where his pioneering bank is going. He is determined to provide people with the frequently forgotten comfort of chatting with live personnel as opposed to frustrating avatars. With
customer service being available 24/7 and waiting times less than 15 minutes, he leaves little to be desired for any client. With an abundance of over 200 personal advisers for customer support, Alior Sync allows its customers to video chat, share images off of desktops, and even share documents and applications between the adviser and customer. Clients can compare offers online, and even conclude agreements during their “visit at the branch.” Moreover, we all know how easy it is to forget to keep track of our financial information. We may store it in different places, or simply forget passwords. Alior Sync provides every client with his or her own Personal Finance Manager, allowing for facile monitoring of finances and knowing what happens to each and last Zloty (the currency of Poland). While Sobieraj is keeping Alior Sync within the borders of Poland for the time being he says, “Anything is possible for expansion for the upcoming years.” After netting a loss of 24 million Euros in 2010, the Bank, has managed to net profits of 36 million Euros in 2011. Being operational for only three years, Alior Bank is on pace to surpass its previous years’ earnings in 2012, most notably due to the introduction of Alior Sync. Exemplifying technological attributes once deemed to be revolutionary, Alior Sync has managed to morph the daily necessities of life together. Now, it is easier than ever to surf Facebook on your smart phone, check up on your friends, and complete a bank transaction or two while at it. As remarkable as it may sound, however, this very well is just the first of Alior Sync’s many golden moments.
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LIFESTYLE
Time to Get Wild Why Wildcard offers something for everyone Sean Leslie
LIFESTYLE EDITOR
T
om Zheng is a U2 Political Science Major, AUS VP Academic, and most recently, co-founder of Wildcard. And at 5:32PM, he’s also two minutes late. “Sorry!” he offers, running in to Cyberthèque Pod 2, a grim place to be on the first day of school. I’m more than willing to let it slide, especially since I’ve already received 2 text updates on his delayed arrival, and because Tom happens to be one of the nicest people I’ve ever met. A quality that’s inevitably trickled into the new and improved Wildcard. In his own words, Tom describes Wildcard as, “a nightlife membership platform.” Now more than just a card, Wildcard’s new mobile application for iPhone and Android allows users to find out where the best party venues in the city are, finding out where to go through Google Maps and who’s there through Facebook integration. The card, on the other hand, is your exclusive pass to guest list at 15 of Montreal’s biggest and most well-known nightclubs, including La Mouche and Ivy, as well as a checkin system to build reward points for
sweet bonuses like Yeh! Yogurt. Wildcard was established two years ago by Adam Hirsch, also a McGill student, and promised entry to nine venues throughout the city. The concept was stuffed inside every froshie goodie bag at the start of the semester, and largely forgotten about. Cue Tom and his business partner, mechanical engineering student Randeep Singh, who have completely redone the Wildcard product and image. The appeal? For club owners, Tom calls it a “delivery platform,” bringing the party-goers to the party and providing valuable information about what their users want, in exchange for a small commission. For Wildcard holders? “The card is focused on the user-experience,” says Tom, not only guiding users towards the most fun places to be at night, but offering benefits to going out. Besides, “there’s no catch,” he offers. “It’s completely free,” Tom adds, suggesting that you really can’t go wrong, while reassuring me that Wildcard “does not engage in any kind of data selling.” According to Tom, “it’s a product
PHOTO VIA WILDCARD
The new and improved Wildcard
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for everyone.” Refusing to specify a target demographic more narrow than 18 to 24, Tom insists that Wildcard is all-inclusive. The website’s landing page is actually in French, which Tom says is Wildcard’s way of respecting the culture and nature of Montreal’s primarily French student body. “What’s ‘Wildcard’ in French?” I offer up. “It doesn’t translate,” he’s quick to acknowledge, and equally quick to dismiss, saying his teams are attending frosh activities at HEC, UQAM, and Université de Montreal to warm receptions. Tom even suggests the possibility of expanding to venues in the village, in order to acknowledge Montreal’s gay population and truly make sure no group or individual gets left out of “getting wild.” While he admits they’ve focused on the student body for the time being, he truly believes Wildcard offers something for everyone, regardless of race, gender, sexuality, occupation, or background. In fact, this is how Wildcard differentiates themselves from the heavily saturated party promotion scene in Montreal nightlife, dominated by what Tom calls “the hardcore bros.” Wildcard is not a service plugging a specific event, selling tickets or pushing a particular party. As Tom puts it, Wildcard will be “a center of information,” stressing user inclusivity. Distribution is underway, and the app will be ready for download in a few weeks time, along with their launch party, so keep an eye out for Wildcard. “What’s happening this weekend?” I ask, testing the waters. “Starting this Friday, you will be able to use Wildcard at all of our affiliated venues. For more, visit getwild.ca.
LIFESTYLE
Marché 27
A review of Montreal’s hottest tartare bar
Kokulan Mahendiran & Hector Goasguen STAFF WRITERS
W
hat with the apprehension of starting school and the seemingly permanent hangover that comes alongside it finally over the horizon, there is now more need than ever to treat yourself to a nice meal. Featuring a chic yet decidedly unpresumptuous atmosphere, Le Marché 27 offers a perfect little retreat from the ever-growing stress of McGill, with all the hustle and bustle of St. Laurent mixed right in. The restaurant is located on 27 Prince Arthur W, just a street west of St. Laurent. Whether you’d like to go for the traditional beef, French style (dijon, tabasco, capers, olive oil & shallots), or if you’re feeling a tad more adventurous and would like to try out the barramundi, in say, tropical style (pineapple, melon, shallots, diced tomatoes, cilantro & lime juice), Marché 27 specializes in tartare and offers a divine menu with just the right array of variety. For all the seafood lovers out there, barramundi is by no means your only option; tuna, salmon, scallop and lobster are among the raw fishes available that can be pre-
pared in the style of your choice – 13 in all. With regards to sides… well, you can’t go wrong with their amazing fries served with delicious homemade mayo. And as for drinks, the Martini Tatin, a delectable concoction of vodka, caramel and apple juice, tastes as if it were sent down from the heavens – and from 5-8pm, you can get a glass of heaven for just five dollars each! Their desserts could no doubt be better – especially given their cost, but fear not, for Juliette et Chocolat is right around the corner. For those of you who live under a rock, Juiliette et Chocolat is the place to go for those craving a scrumptious bite of chocolate (I’d recommend the Fleur de Sel brownie). Now in its fifth year of operation, Marché 27 has become a staple Montréal establishment. It is not merely the first tartare bar to have opened in the city, but Montréal’s foremost. Simplicity and freshness come together to produce a truly worthwhile experience at Marché 27 - a restaurant you needn’t think twice about before checking out for yourselves!
KOKO’S PICKS Main: Smoked Salmon Tartare, Spicy Style (100g) $13 Side: Fries $4 Drink: Martini Tatin $5/10 Total: $22
The Bull & Bear - September 2012
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LIFESTYLE
Sticks and Stones May Break My Bones But Chains and Whips Excite Me A writer’s take on the New York Times best-seller, 50 Shades of Grey Claire Llewellyn STAFF WRITER
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here was The Twilight Saga, and now has come along the hottest read yet, the Fifty Shades of Grey trilogy-- and I must say, it’s hot. We women like to say that men think with their penises. Well ladies, if your va-jay-jays had a say, you would be reading Fifty Shades of Grey. The trilogy has received many mixed reviews, but curiosity, horniness, and desire has led Fifty Shades of Grey to be the fastest-selling paperback of all time, according to Daily Mail. Let’s just say I was curious. The book is the story of a virgin, Anastasia Steele, who meets a young, sexy, rich, and “troubled” businessman named Christian Grey. Christian seduces Anna, and minus some drama, they live happily and luxuriously ever after— all the while having mind blowing sex. This sounds like the classic romantic novel, until around page 100, when Christian pulls out a contract defining his and Anastasia’s sex life. For lack of a better phrasing, Chris-
tian is into BDSM. Now, I would not call myself a conservative prude, but the book really started to tug at some of my emotional chords. It was very difficult for me to understand why Ana let herself be whipped, chained, and a dictionary of other things. After some soul searching, what bothered me most was truly not the use of dildos, butt plugs, nipple clamps or bondage, as much as it was the overall idea of Ana’s submission. For me, sex gets personal, and I could not imagine putting myself in a position of passively obeying. A modern day relationship for me is about teamwork, in the bedroom or in the real world. Fantasy is fun and good, but after making it half way through the first book, I started to wonder where the happy ending was going to come in. At what point would the couple be doing girl on top, instead of girl handcuffed to wall? As I strolled down the beach this summer, every suburban mom had this book in tote. I wondered to myself: is BDSM the new it thing? I
PHOTO VIA ZIPMEME
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asked some of my friends, what is it about Fifty Shades of Grey that makes us so wet (literally) and wild for it? Mor Pecht, a U2 student, described Christian and Ana’s relationship as being extremely relatable. “We like to think that we are independent, that we like the control, when in fact, we long for the opposite—for some precise direction in life, in relationships, and in sex,” Pecht added. While some may say we ladies have taken this book too seriously, I thought Pecht was onto something. I believe that most couples have more in common with Steele and Grey’s relationship than they would like to admit. The BDSM relationship may rather point at maintaining one’s identity while all the while compromising in a loving relationship. Whether we all see it in this light or not, in the very least, this racy trilogy has undoubtedly united females. With a sly glance from behind our black covered copies, we all know what each other is really reading. Now, whether or not we decide to take some new moves to the bedrooms is our business, but we have all spent a few evenings with Christian & Anastasia. E.L. James, author of the trilogy, was named one of the 100 Most Influential People in the World in the April 2012 issue of TIME Magazine. Personally, while I can appreciate James’ contribution to my 2012 summer, I think I may be opting for something a bit more Nicholas Sparks next time. In the very least, James has gotten all of my lady friends and I thinking outside of the box with our men. But please, if there are handcuffs involved, they had better be pink and fuzzy.
LIFESTYLE
PHOTO VIA BUZZFEED
High Fashion in High Demand The descension of designer wear Emily Rubin
STAFF WRITER
O
nce upon a time, we were all 13 years old. We spent our days confined to one school building (a practice which has been sustained by the majority of McGill management students), we fought with our parents over privileges that we were undeniably way too young for, and when it came to fashion, we wore all the hand-me-downs one closet could handle. Let’s recall the days when Jacob Jr. was a Godsend, when our only claims to the fashion world were being on trend for the trend of being obliviously untrendy. What 13 year old could be expected to be on the up and up of the Milan 2003 Spring Ready-To-Wear collection? The beginning of High School days should not, in fact, mark the beginning of a shopping wish list topped by Gucci & Balenciaga. These insights come much later (if at all) to the future fashionista. Or rather, once upon a time they did.. The current fashion tale reads quite differently, with 13 year olds being well versed in high-end fashion. So who or what is accountable for this shift of the fashion world? Culprit number one; TV. While children born to the 90s grew up on Boy Meets World and Dawson’s Creek, today’s youth plugs into Gossip Girl and the revamped (fashion fortified) The Bull & Bear - September 2012
90210. TV introduced us to Survivor, and gave them Project Runway and America’s Next Top Model. The result; exposure to brands never seen before. It’s fashion advertising and product placement in its grandest form, being seamlessly integrated to the point of becoming its own TV character. Coming in on a close second; the Internet. Assisting to further along TV’s messages about brands and fashion, the Internet’s surge of information have the youngsters sharing every item that they hold to be fashionable, as was spoon fed to them by their television sets. One reblog, pin, like, or tweet later and their entire “friend” community now knows what item their hearts desire (just in case High Schoolers weren’t already in enough “how to be cool” competition). But if our days of saving up for the irrefutably hip fashions of the notorious Juicy Couture velour sweat suit or Von Dutch trucker hat weren’t enough to send young parents into a tizzy, the current stores offerings will really have their heads spinning. Top designers are working hard to get their names to penetrate the boundaries of the fashion world- from baby lines all the way up to those that can actually afford the “real deal” of their
regular collections. Culprit number three then goes to high-end fashion designers teaming up with chain stores for more affordable limited edition lines. Even those who were not among the lucky few to hold claims on a rare piece of Lanvin for H&M or Jason Wu for Target, now envision the brands as compatible with their lifestyles. The once unattainable fashions have descended down from Holt Renfrew and Ogilvy in order to accommodate them. Their thirst for high-end fashion will now certainly remain unquenched. With designer clothing being so accessible for viewing and purchase, teenagers across the globe are bound to believe that they belong in it. A world is being created in which we overlook the 3-month olds in the adorable feety-pajamas because our eyes are all over the toddler sporting the Diane Von Furstenberg wrapdress courtesy of The Gap. The question is, how far will this trend go? Are we just a hop, skip, and a bounce away from phasing out of Huggies and Pampers in favor of Pradas and Valentinos? Maybe even prepare for the future in haute couture blankies? At least then when the ratty piece of fabric lives on past the child’s tenth birthday, they could claim it as a “vintage Chloé.”
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“In nature, nothing exists alone.” - Rachel Carson, Silent Spring Are you curious about how man’s relationship with nature relates to contemporary management challenges? In honour of the 50th anniversary of the publication of Rachel Carson’s Silent Spring, a book often described as a catalyst for the modern environmental movement, the Marcel Desautels Institute for Integrated Management (MDIIM), in collaboration with The Bull & Bear and the Management Sustainability Network, invites students from Management and Chemistry to an interdisciplinary panel discussion and informal mixer:
Reflecting on Silent Spring: Insights for Contemporary Organizations With Linda Lear, Historian, biographer and author of Rachel Carson: Witness for Nature
Wednesday, September 19th 2012 Time: 5:30pm-7:00pm Location: Bronfman Building, 3rd Floor Lounge 1001 Sherbrooke St. West, Montreal, Quebec H3A 1G5 A diverse panel, composed of one student and one professor from Management along with one student and one professor from Chemistry, will offer reflections on lessons from Silent Spring for today’s and tomorrow’s decision makers. Biographer Linda Lear will respond to the panel’s reflections before opening to an informal Q&A with the audience. Refreshments will be served. This event is open to the public. Event contact: adam.halpert@mcgill.ca
OPINION
PHOTO BY CREATION-ME VIA DEVIANTART
Regret When YOLO doesn’t cut it Ali Khan
STAFF WRITER
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accept the universe”, exclaimed Margaret Fuller, a New England transcendentalist but me, myself and I had never accepted the universe. Never had I ever experienced a brimming satisfaction about my affairs; a way of life is always flawed, a goal always slight, a success always amiss, a love always corrupt and the past, well, always unexecuted. This changed when a shrewd afghan farmer by the name of Tayeb explained to me his concept of Pushemani-oTasur. As his stocks of Urdu and my strands of Kabuli Pashto finally began to sew meaning, it became clear that he was alluding to an eternal, inevitable truth of the human existence: regret. It’s a universal abstraction but Tayeb believes (and eventually, so did I) that it is not a curse but a credit; one must not solicit a life devoid of regret but one positively defined by it. We all feel it. At its axiomatic basic, regret is a repentance of the past. Be it a missed opportunity, a moment of absolute idiocy or a rueful decision, it’s never exactly a cloud-nineesque experience. So much so, that popular culture preaches the pursuit of a life with ‘no regrets’ because after all ‘you only live once’ and you must ‘seize the day’. It’s called carpe diem, my friends and you’d be damned if you Amite Occasionem i.e. let the opportunity slip by. The Bull & Bear - September 2012
Nonsense. We’ve taken it all a bit too literally, I’m afraid. They’re great ideals to have if you don’t use them to justify your irrational desires but far too often we rationalize citing the notion that otherwise an imminent haunting of regret awaits us. ‘I’ll regret not going out’ is a common song and dance during the exam period. Potential regret has become a source of largely unnecessary anxiety for modern society and regret about the past is falsely understood as unnecessary baggage. Basically, as Shakespeare famously wrote, ‘Things without all remedy should be without regard; what is done is done.’ Admirable philosophy, one might think. Except this is Lady Macbeth asking her husband to man up about having murdered people. We strive to either live a life free of regret or attempt to become immune to it. Ironically, the inability to feel regret is a symptom of psychopathy. ‘Life is full of contradictions’, Tayeb said and only once we have properly digested this notion will we truly be able to locate the knots we have knit and must carefully undo or far better, stitch our lives around. Many of us returning this year will have several major regrets from the past year. Research shows that thirty-three percent of all our regrets pertain to decisions we made about education - more than anything else
and followed by romance and career. So university seems to be a breeding ground for regret and we must make our peace with it. But how? The passage of time will heal the pain and some good-natured dark humor will help but in the end, we must take comfort in the universality of it. It is important for us to understand that regret is only a by-product of an endless pursuit of dreams and aspirations. The fact that we feel pain when things go wrong is proof that the human spirit is still bent on doing its best, that there are higher grounds in all aspects of life. Say, for example, the human race did not feel regret having hurt a loved one. Well, it’s true that we’d feel far less regret through out our lives but would we really want to live in this type of a world? What Tayeb believed was that the human race still needed to learn to love the flawed, imperfect things we create and forgive ourselves for creating them because regret is not a sign that we did badly but that we can do better. Margaret Fuller, a New England transcendentalist exclaimed ‘I accept the universe’. Upon hearing this, a British writer, Thomas Carlyle retorted with ‘By god, she’d better!’ We need to accept the universe because we have no other choice. So here’s to a year full of lessons applied.
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OPINION
Misogyny in the Friend Zone The “Friend Zone” doesn’t fail to hurt women Davide Mastracci STAFF WRITER
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t’s easy to be a feminist on paper, yet the day-to-day actions of many well-meaning men contradict their feminist principles and point to an underlying misogyny. One of the sources of this unconscious misogyny is the infamous “friend zone” and the reaction it sparks in some men, demeaning women in the process. The main problem with men in the friend zone is their tendency to act as if they’re the victim of some horrible crime. This belief is encapsulated perfectly in one of the many BroTips—cheesy pieces of advice for men lacking common sense— floating around my News Feed: “Ladies, guys are sick of hearing you ask where all of the ‘nice guys’ are. They’re in the friend zone, where you left them.” Men who buy into the nice guy-
asshole binary usually do so based on an experience where they, as seemingly nice guys, were passed over for an asshole, leading them to believe that all women like assholes. Upholding this narrative demeans women by looking condescendingly upon their choice of sexual partners simply because they aren’t you. By failing to respect the choices women make in their lives, you belittle their intelligence and freewill. It’s bad enough when you do this to one woman, but when you extend this attitude towards all of the women in your life and beyond, the problem becomes far worse. This type of attitude can foster hate towards women, and in our patriarchal society this is the last thing we need. Yet unfortunately, it seems that a major source of violence against women comes exactly from
ILLUSTRATION BY MIKE HOROWTIZ
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these types of private day-to-day relationships. In light of this, I’m going to offer some advice to help men escape the nice guy vs. asshole binary, and the hatred it often brings about. First, stop looking at yourselves as nice guys. If your entire friendship with a girl is based upon potentially sleeping with her, you went into the friendship with ulterior motives and thus aren’t nice at all. This is also why I choose to refer to the “friend zone” as the “no sex zone”; she may look at you as a friend, but you certainly don’t look at her like that. So when she inevitably rejects you and tells you she just wants to be friends, I can promise you won’t be. Second, stop believing you’re perfect. Too many guys have a hard time recognizing the reason(s) why a girl doesn’t like them. Instead of looking at themselves and wondering why they didn’t get the girl, they just blame it on assholes and the girls who love them. Maybe you and her just didn’t click, maybe you weren’t being the best version of you, or maybe you just said the wrong things. Whatever the reason, something did go wrong, and you should figure out why, instead of blaming the girl or the entire female population. Finally, be honest with yourself. If you can’t be just friends with her, remove yourself. If you want to sleep with her, don’t try to bullshit being “friends” with her. This will help you develop more authentic friendships and save yourself the bitterness and hate you may experience in the “no sex zone.” Guys, stop complaining and start thinking. The women in your life will appreciate it and you may also find yourself in the “no sex zone” a lot less often.
OPINION
Food for Fuel
As corn and wheat production decline, priorities come to a head Zain Alimohamed OPINION EDITOR
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he worst drought in half a century has led to falling corn and wheat production in the U.S. and Russia, causing seismic waves in an intricate supply chain ranging from livestock feed to biofuel. Without an end to declining production levels, supply shocks and their inflationary effects on corn-related products—including some 2500 supermarket goods—have brought the ethanol mandate into question. The Renewable Fuel Standard (2005) and Renewable Fuel Act (2007) set a precedent for the amount of “clean” fuel required for blending with traditional gasoline. For most purposes, the required percentage blend was 10%, typically using corn-based ethanol. 40% of corn produced in the United States is used to produce fuel, with a further 12% being exported and 10% for food products, this leaves approximately 34% and a small surplus for use as feed. As a result of the drought, corn prices have surged over 60% from June leading to supply shocks that are exacerbated by the existence of the ethanol mandate. The drought and rising cost of corn has sparked a heated food vs. fuel debate with many calling for a waiver or suspension of the ethanol mandate by the U.S. Environmental Protection Agency. Arguments in favour of the waiver generally consist of an appeal to rising global food prices as a result of higher corn prices and a denunciation of subsidization and government intervention in the free market. As far as global food prices are concerned, the UN Food and Agriculture Organization’s index of global food prices rose 6% in July, the biggest increase since November 2009. The index, which measures the export prices of food, The Bull & Bear - September 2012
PHOTO VIA WWW2.DUPONT.COM
is just 10% below its February 2011 record. The potential effects led the UN Director-General of the Food and Agriculture organization to suggest that “Much of the reduced crop will be claimed by biofuel production in line with U.S. federal mandates, leaving even less for food and feed markets.” The mandating of corn-based ethanol in gasoline drives up the cost of food, as corn is used in feed for livestock and other food products. Researchers at Texas A&M University have concluded that American consumers pay approximately $40 billion in higher food prices a year as a result of the mandate. As far as the environmental benefits go, ethanol can reduce emissions by approximately 20%; however, much of this is negated with the amount of energy and emissions required to grow the corn. All of these effects were rather easy to ignore until now, due to the drought, forcing the US government to intervene further by purchasing $178 billion worth of meat, as beef and pork producers slaughtered
more animals in an attempt to avoid the higher cost of corn-based feed. Perhaps most importantly, higher corn prices bode ill for world food prices due to their vast interdependency. As students, budgeting is exceedingly important and these rising food prices are likely to be felt by us too, so it may be wise to pay special attention to price changes and to use cost saving strategies. While North Americans devote approximately 15% of their income to food, the developing world spends roughly 40% of their income on food, and an incremental price increase for some could be a fatal barrier to many. In Douglas Coupland’s Player One, five individuals watch the world crumble when the world supply of oil depletes. Understandably, anarchy ensues as vigilantes fight to secure the last drops of oil. Corn, sorely underrated as an essential product, just might be on the same level as oil in terms of its importance in the global market. It might even be worse; hunger is a stronger drive than putting gas in the tank.
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OPINION
A Long Overdue Review: The Dark Knight Rises VS. The Avengers The Avengers was merely good enough, and got away with more than it should Wyatt Hnatiw STAFF WRITER
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he Avengers cheated. Before delving any further and for the purposes of this article, the assumption is being made that you’ve seen both movies and won’t mind that the endings are spoiled, so let’s move on. At the time of writing, The Avengers was the better-reviewed film; The Avengers has grossed more in the box office and has gotten significantly more hype. However, none of this praise should matter, because The Avengers cheated. The main reason why Avengers got so much praise is that it did something new; it unified the Marvel brand into one movie and did so competently. While impressive, it circumvents what typically makes a “good” movie. Reviewers praised the Avengers for managing of 7-8 characters while not having any one character seem one dimensional or shallow (besides Cobie Smulders’ Maria Hill). However, the way the Avengers cheats is by doing virtually all of the characterization necessary for a good movie through other film projects: Tony Stark going from selfish to saviour, Thor lost his ego, Steve Rogers took his steroids and Banner learned to control the Hulk. Audiences accept the lack of development, as this can just be the de facto climax of all the preceding movies. There’s nothing else for these characters to do besides stand around (a large chunk of the movie) and fight placeholder enemies who may as well have been henchmen from the Power Rangers. The critic groupthink gleefully imagined the writers’ logic: “Since we already have the character pieces, this movie is free to be two hours of action!” which sounds more like
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PHOTO BY POPWATCH.EW.COM
Transformers 3 than good cinema. 8 years after The Dark Knight, Bruce Wayne is a cripple, Harvey Dent’s martyrdom has allowed Commissioner Gordon and the cops to put away apparently every criminal in the city, but the weight of the lie is taking its toll on Gordon and Wayne. Already we’re miles ahead of Avengers’ “Oh no, aliens!” direction, but this movie goes deeper. In Batman Begins, Bruce’s father, Thomas, muses “Why do we fall? So we can learn to get back up.” In the first film, Batman “begins” and in The Dark Knight, Batman takes the fall for Harvey Dent’s crimes and romanticizes his return, the Batman “getting back up.” This 3-act theme amongst the trilogy gives TDKR a lot of interesting things to deal with, including fallout from Rachel’s death in TDK, Alfred’s pain at watching Wayne kill himself, and the logistics of a middle-aged Batman going up against a villain like Bane. The plotline that Rises follows isn’t revolutionary by
any means and arguably inferior to The Dark Knight, but the story of redemption it tells is compelling and concise, which is what a movie should do: stand alone without hours of supplementary movies to do the heavy lifting for it. Each movie had its plot holes too; how did Thor get back to Earth without the bridge? How did Bruce Wayne get back to Gotham from the Middle East with no money? Why didn’t trading stop when Bane attacked the stock exchange? And it’s suspicious good fortune that Stellan Skarsgard built an emergency shut off button in the Alien Portal Machine. The bottom line is that the Avengers is the film that gets the majority of the hype, but as a Eric Goldman from IGN said, “The film could be qualified a “win” simply for not falling apart,” whereas TDKR is, as compared to its prequel, the greatest superhero movie of all time. Being merely good enough shouldn’t cut it in this business.
OPINION
Hot Senior Administrative BBQ: Acclaimed blogger and muse Heather Munroe-Blum has cordially invited you to partake in a gluttonous feast of epic proportions. Sept. 13, 12:30, Free.
SSMU Food: With a newly renovated Gerts and Lola Rosa Xpress, remind me why we don’t have an office in SSMU? More importantly, why even bother with Sinfully Asian?
Clint Eastwood’s RNC Speech: Clint’s empty chair stunt purged the entire affair of any credibility, becoming the stereotype they try to disperse: old white men yelling at things that don’t exist.
Color Me Rad: This 5K marathon features a jaunt around the Olympic Park (with 5 “colouring stations”) and enough corn starch to thicken the wimpiest of runners. Oct. 7th, 9:00 AM, $35.
OAP 2.0: The Engineering Undergraduate Society’s Blues Pub will be accepting your unused OAP drink tickets that you waited two hours to get. Fridays, McConnell Engineering Basement, Free.
@McGillProblems: The queen bee of biting McGill criticism. Don’t get on her bad side. For example: “Last minute studying in the library? Here, have some helpful construction background noise.”
#mcgillswag We know, those McGill sweatpants look mighty comfy, but the judgement of your peers (and more importantly, CampusSpot) will get you many a derisive glance.
Gangnam Style: While the song by South Korean rapper PSY might be catchy, trying to do the accompanying dance from the music video makes you look like a drunk Stifler wannabe.
Frosh: It’s done, it’s over, it’s forgotten. Look back upon those carefree times with fond memories, but pledge to never again indulge in the atrocities committed that week.
Trying to kill Pauline Marois: What is the point of running in a race if you are just going to try to kill your fellow competitors? Please try to keep it classy, everyone else.
New City Gas: While it might have become the it venue this summer on the party circuit, it’s not the place you want to be seen at, or worse, be seen liking on Facebook. 950 Rue Ottawa.
Altitude Club 737: Here’s lookin’ at you Froshies: the answer is always “No.” This is where the annoying bright white light in the sky comes from at night. 1 Place Ville Marie.
Not The Bull & Bear - September 2012
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